How to Calculate Interest in a Variable Interest Account?

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SUMMARY

The discussion centers on calculating the total amount in a variable interest account where the interest rate increases annually. The formula derived for the total amount after 'n' years, given an initial deposit 'x', is A = x * (1 + 0.01 * n) * (1 + 0.01 * (n - 1)) * ... * (1 + 0.01 * 1). This formula accounts for the incremental interest rates of 1%, 2%, and 3% for each successive year. The user successfully solved the problem shortly after posting, indicating that a straightforward approach exists for this calculation.

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DjDukes
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Is there a simple formula to find the amount of money in an account given a situation like this...

You deposit x into the account
Each year you get interest
Year one the interest is 1%
Year two the interest is 2%
Year three the interest if 3%
and so on

Is it possible to get a simple general formula for the amount of money in the account at the end of any year n?
 
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DjDukes said:
Is there a simple formula to find the amount of money in an account given a situation like this...

You deposit x into the account
Each year you get interest
Year one the interest is 1%
Year two the interest is 2%
Year three the interest if 3%
and so on

Is it possible to get a simple general formula for the amount of money in the account at the end of any year n?

Never mind I got it like 5 mins after posting.
 

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